Move to give mayors powers to raise funds through levies, but industry says it will ramp up prices and inflation
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British holidaymakers could have to pay a nightly tax on hotel stays and Airbnb-style visits in plans expected to be announced by Rachel Reeves in the budget next week.
The chancellor is reportedly preparing to give mayors powers to raise taxes by charging tourists on the cost of an overnight stay in their cities.
The tax could raise hundreds of millions of pounds for mayors to invest in transport and public services, but it would represent a further blow for the hospitality industry, which was squeezed by tax rises and extra employment costs announced in the last budget.
